Sincerity Applied Materials Holdings Corp. (OTC: SINC) Announces 1-for-100,000 Reverse Stock Split and Retirement of Legacy Convertible Note Under Section 3(a)(10)

Strategic Rationale for the Reverse Split

This action addresses long-standing structural inefficiencies and prepares SINC for scalable institutional growth. Key drivers include:

• A vendor dispute resulting in the unreturned issuance of 77 million shares, in violation of performance-based refund terms.
• Approximately 504 million shares issued to former associates, who failed to meet post-issuance obligations and never returned the equity.
• Toxic legacy note conversions that severely inflated the public float and suppressed the stock price.

These historical issues created significant barriers to valuation growth. The reverse split is part of a broader restructuring to reset the equity base and better align with institutional expectations and SINC’s true enterprise value.

Valuation Justification and Strategic Positioning

SINC is initiating construction of its flagship quantum glass factory in Adelaide, Australia, with a 15,000 metric tonne per year capacity. While pricing and contract details remain confidential, the company’s conservative valuation model includes:

• Revenue-Based Valuation: Industrial-grade revenue multiples of 1.5x to 2.5x applied to forward-looking production capacity.
• Cost Efficiency: Proprietary processes enable high margins, with production costs projected to be well below 50% of wholesale value.
• Infrastructure & IP: Investment in automation, proprietary coating systems, and nanomaterial integration contributes to long-term valuation premiums.

These metrics support an estimated post-split valuation in the $24 million to $36 million USD range—substantially higher than the company’s current market capitalization under $250,000 USD (pre-split).

"This is the right move at the right time," said Yiwen (James) Zhang, CEO of SINC. "Our capital structure was no longer representative of our business fundamentals. The reverse split clears the path for a NASDAQ-grade share profile while we scale operations."

Convertible Note Retirement under Section 3(a)(10)

The company has reached a settlement to fully retire its last convertible note via Section 3(a)(10). This will result in a one-time fair-value based issuance, with no further convertible instruments expected.

Following this event:

• No further toxic financings or equity offerings are planned.
• The company intends to grow through operations, partnerships, and institutional channels.